Innocent Spouse relief granted

When spouses file a joint federal tax return, both are generally liable for the tax owed. If eligible, joint filers may seek “innocent spouse” relief that shields them from liability. In one case, it was undisputed that a married couple’s joint tax return included an understatement. The IRS and the wife agreed that she didn’t […]

High Income non-filers are now receiving IRS attention

In its efforts to raise tax compliance among certain high-income individuals, the IRS recently reached out by mail. Letters went to 125,000 taxpayers with incomes between $400,000 and $1,000,000, who haven’t filed tax returns since 2017. In all cases, the IRS received third-party information, such as Forms W-2 and 1099s, showing income. In a statement, […]

If you didn’t contribute to an IRA last year, there’s still time

If you’re gathering documents to file your 2023 tax return and you’re concerned that your tax bill may be higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 15, 2024, filing date and […]

Do you qualify for a premium tax credit?

Filing an accurate tax return can require higher-than-usual attention to detail and it’s relatively easy to miss something. Case in point: The IRS reports it has received and is rejecting an increased number of electronically filed 2023 returns that claim the premium tax credit (PTC). That’s because taxpayers neglected to attach the supporting Form 8962. […]

The use of AI in fraud investigations

Artificial intelligence (AI) has quickly become critical to many types of fraud investigations, including those of the U.S. government. The U.S. Treasury Department’s Office of Payment Integrity (OPI) has announced it recovered more than $375 million in fiscal year 2023 using AI. OPI currently is focusing on check fraud, which has increased 385% since the […]

Taking your spouse on a business trip? Can you write off the costs?

A recent report shows that post-pandemic global business travel is going strong. The market reached $665.3 billion in 2022 and is estimated to hit $928.4 billion by 2030, according to a report from Research and Markets. If you own your own company and travel for business, you may wonder whether you can deduct the costs of having […]

Voluntary Disclose Program deadline approaching

The IRS voluntary disclosure program involving the Employee Retention Tax Credit (ERTC) runs through March 22, 2024. It allows eligible businesses to repay 80% of the money they received after filing ERTC claims in error. They also don’t need to pay penalties and interest. To help educate taxpayers on the program, the IRS has posted […]

Where’s my refund?

Tax filing season is underway. If you’ve filed your federal tax return and are wondering when you might receive your refund, check out the IRS’s enhanced Where’s My Refund? online tool. It provides taxpayers with three key pieces of information: confirmation that the IRS received your return, notice of approval of the tax refund and […]

Can your social media posting impact a tax dispute?

Can posting on social media be evidence in a tax dispute? In one case, the U.S. Tax Court said yes. The court allowed the IRS to present a woman’s blog posts as evidence. The taxpayer and her husband allegedly underpaid tax for multiple years. After the husband died, the wife sought “innocent spouse” relief, which […]

FinCen reports a surge in fraud Schemes

If you’re due a tax refund and are reluctant to receive it by direct deposit, here’s a reason to reconsider. The Financial Crimes Enforcement Network (FinCEN) has reported a surge in check fraud schemes using the U.S. mail. The latest available figures from FinCEN show that from 2020 to 2022, the number of suspicious activity […]